An auto-parts company is deciding whether to sponsor a racing team for a cost of $1 million. The sponsorship would last for three years and is expected to increase cash flows by

$560,000

per year. If the discount rate is

6.2%,

what will be the change in the value of the company if it chooses to go ahead with the sponsorship?

A.

$491,365

B.

$786,184

C.

$835,320

D.